- It is too early to declare victory on inflation
- Will be monitoring data flow in the coming months to calibrate policy as needed
- UK economy has made good progress on disinflation
- But persistent components of inflation and labour market uncertainty are causes for concern
- Outlook for wages, services prices is unclear
- BOE is hampered by challenges on quality of labour market data
- November PMI may suggest some slowing in the economy
- But don’t want to take a strong signal from just one single release
- Views the probabilities of downside and upside risks to inflation as broadly balanced
A little bit of this and a little bit of that. But her overall stance appears to fall in line with most of the policy committee at least. That in the sense that they favour a more “gradual” approach to cutting rates. As things stand, traders are pricing in ~79% odds that the BOE will leave the bank rate unchanged at 4.75% in December.
This article was written by Justin Low at www.forexlive.com. Source